AIGC/AGCPWisdomTree Broad Commodities

The Index is designed to reflect the movement in the price of the futures contracts (that are continuously rolled on a pre-determined rolling schedule) of the commodities used in the Bloomberg Commodity Index^SM. The Index is a broadly diversified index priced by reference to commodity futures contracts from the major commodity sectors: Energy, Agriculture, Industrial Metals, Precious Metals and Livestock.When the Index is rebalanced no sector may constitute more than 33% and no indiviudal commodity may constitute less than 2% of the Index. A futures contract is an agreement to purchase a commodity at an agreed price, with delivery and payment to take place at a specified point in the future. Futures contracts are generally disposed of just before the term of the contract expires and new contracts entered into in order to avoid taking actual delivery of the commodity in question (a process known as 'rolling'), so that continuous exposure to the commodity is maintained. The contracts being purchased may be more expensive than the contracts being sold which would cause an investor in commodity futures to make an additional loss. This market trend is known as 'contango'. Alternatively the contracts being purchased may be cheaper than the ones being sold which would result in an additional gain, known as 'backwardation'. This price difference is commonly referred to as "roll yield". As the roll yield is incorporated into the calculation of the value of the Index, it may therefore have a positive or negative impact on the value of the Index depending on whether there is contango or backwardation. The ETC will also be affected as its value is based upon the value of the Index.